Category Archives: Business Finance

Business, Business Advice, Business Finance, Economy & Jobs News, Politics

The Budget – key next steps for businesses

Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, shares the key next steps for businesses in Wales following the Autumn Budget.

 

National Insurance and National Minimum Wage increases

“Businesses should look at their budget planning for next year and cashflow forecasts. Both of these increases will impact the next round of staff wage increases and the increases to National Minimum Wage don’t just impact those at the bottom, but put upward pressure on those above. Getting this right can take time and require a few rounds of review and revision to get right and ensure all the potential knock on impacts are carefully considered. Businesses will need to consider the impact of these increases to pricing, cashflow and working capital.”

 

Employee Rights Bill

“Although we don’t have fixed dates yet, businesses with staff currently on zero hours contracts may want to include this consideration in their planning for next year and think about the impact of those staff who are able and want to move onto fixed contracts.  Both the tax and National Minimum Wage increases along with the proposed Employee Rights Bill will have impact on future staff planning and recruitment.”

 

Business owners considering selling or retiring

“The increases to Business Asset Disposal start from 5 April 2025, so those business owners already thinking about exiting may wish to consider the impact on their timeline.”

 

Businesses looking to acquire

“As above, the changes in Business Asset Disposal Relief in 2025 may provide an immediate opportunity to look at potential acquisitions you would like to make.”

 

Capital Allowances

“Capital Allowances are set to remain in place as they are. Those businesses who were concerned about certainty can now act and plan with confidence that the rules should remain the same for the foreseeable future.”

 

Inheritance Tax, business property relief and Business Asset Disposal Relief changes

“A common issue we see is business owners leaving it too late to plan effectively for retirement or exit in a way that maximises the value of their business or meets all of their retirement and exit objectives. Achieving this can require several years of planning to align the short-term and long-term business and financial objectives. Ensuring you plan further ahead can help minimise the impact and risks of tax changes.”

 

The government’s growth strategy

“The Budget identified important sectors that the government will be looking to support with specific initiatives. Businesses operating in these sectors may want to keep an eye out for further announcements and engage in any consultations. The Chambers will of course be contributing and help facilitate these. The sectors identified are:

  1. advanced manufacturing
  2. clean energy industries
  3. creative industries
  4. defence
  5. digital and technologies
  6. financial services
  7. life sciences
  8. professional and business services”

 

The industrial strategy can be found on the government’s website.

 

Farmers

“Generational small farmers will feel particularly aggrieved by the changes to agricultural land relief for Inheritance Tax and some intense lobbying will be taking place before these come into effect. Whether that lobbying will have any impact we will wait and see. As with the changes to business property relief, farmers will need to consider their succession planning and seek advice to ensure they have a workable plan in place that meets their objectives.”

Wales-specific impacts

“The increases to funding for the Welsh Government will be rolled into the next Welsh Government budget planning this December. Support for business will be a part of those discussions, and the Chamber will continue to be a voice for members and businesses as a part of the Welsh Government budget planning process.”

Business Finance

Pareto Financial Planning partners with Karman Digital to enhance client engagement and experience

Pareto Financial Planning, the award-winning Manchester based financial services business, today announced that it has collaborated with Karman Digital to further enhance its client engagement and communications. The partnership underscores Pareto’s commitment to a client first approach, a key driver in its rapid growth strategy to date and going forward.

Karman Digital optimises communications workflows utilising a bespoke Financial Advisor HubSpot enabler app called ‘Hatch’ – which seamlessly allows two-way data transfer from Hubspot with both Intelligent Office (IO) and Xplan CRM systems.

Ensuring that communications are optimised creates a perfect platform for considered informative engagement, as Stuart Carswell, Director, Pareto Financial Planning, explains: “Historically many IFA’s have struggled with the complexities of integrating data sets across different platforms and this makes efficient communications a challenge. Our engagement with Karman Digital gives us the ability to overcome these challenges and continue to put our clients first, from the beginning of our relationship.”

Jon Pittham, Director, Karman Digital, said, “We’re delighted to partner with Pareto Financial Planning to implement HubSpot as a key tool for their growth strategy. In this increasingly competitive digital world, clients are demanding better experiences. By streamlining client engagement, enhancing reporting capabilities and optimising their data capabilities, HubSpot will empower Pareto to deliver an exceptional client experience. Additionally, this implementation will support their new business acquisition efforts, focusing on referrals and introducers, ensuring they remain a leading firm and positioned for long-term success in an evolving landscape.”

Pareto Financial Planning has more than £1 billion of assets under management and was named as one of the Top 100 advisers in the UK by the Financial Times in 2024.

Banking, Business, Business Finance, Cardiff, FInance, Finance and Banking

UK drops out of Global Pension Index top 10

The UK has dropped out of the top 10 of the Mercer CFA Institute’s Global Pension Index.

The index compares 48 retirement income systems around the world using more than 50 indicators, with a particular focus on adequacy, integrity and sustainability.

The research’s primary aim is to benchmark each retirement income system, but it also highlights areas of reform which could provide greater trust in the pension system of each country as well as increased sustainability and improved benefits.

The UK’s pension system has been ranked as the 11th best system in the world with a value of 71.6, dropping one place since 2023 and out of the top 10. The Netherlands, Iceland and Denmark retained their top three spots for another year.

The index reports that the value for the UK system could be increased by further increasing the coverage of employees and self-employed in private pension schemes, restoring the requirement to take part of the benefit as an income stream (ie not allowing individuals to take all of their retirement savings as a lump sum) and increasing the scope and contribution levels required under auto-enrolment.

Stuart Price, Partner and Actuary at Quantum Advisory, said: “It is disappointing to see the UK’s pension system slip out of the top 10 of the Global Pension Index this year. Its ranking places it as a ‘B’ grade system within the index, suggesting that the system has a sound structure and many good features but that there are clear areas for improvement and reform.

“The state pension only provides 22% of an individual’s average earnings, so private pension saving, whether in defined benefit, defined contribution or collective defined contribution schemes, is crucial to allow people to retire with a decent level of income and at a reasonable age.

“All employers must provide a workplace pension scheme or arrangement and automatically enrol employees into it. Auto-enrolment has worked to a degree but would benefit from further reform which could improve the UK’s index ranking. The number of individuals saving for their retirement has increased substantially since auto-enrolment was introduced in 2012, with 76% of the working population contributing to their pension schemes.

“However, auto-enrolment could be extended to include younger workers from age 18, lower earners and the self-employed, in addition to increasing the total contribution rates from 8% to at least 12%. Following a review in 2017 which received royal assent in September 2023, plans are in place to lower the age of eligibility for auto-enrolment but frustratingly no date has been set to introduce this legislation.”

Accountancy & Accounts, Accounts and Accountancy, Business, Business Finance, Finance and Banking

ACCA sets out how accountancy profession can meet the nature reporting challenge

Report sets out accountant’s vital role in protecting and restoring the natural world

 

​​​Accountants must understand the concepts, principles, challenges and opportunities of nature-related reporting to engage with boards and management on this increasingly vital issue.

 

The global accountancy body ACCA has issued a ​paper Empowering business: navigating nature-related reporting, designed to assist accountants supporting organisations to undertake nature-related reporting and drive meaningful action to tackle the sustainability-related challenges.

 

​​Jessica Bingham, regional policy ​​​l​​​​​​​ead for ACCA​ and the report author, said: “Nature is the foundation for all life on Earth​,​ and our research suggests that an overwhelming number of organisations do not effectively assess and communicate their impacts and dependencies on nature.”

 

Organisations are increasingly disclosing their impacts and dependencies on nature, especially with the advent of the Corporate Sustainability Reporting Directive in Europe. The International Sustainability Standards Board (ISSB) has​ recently announced​ that it plans to carry out ​​research into biodiversity, ecosystems and ecosystem services as part of its work plan over the next two years​, with a view to developing global reporting standards​. ​         ​

 

These changes will require accountants to increase their knowledge in this area. ​A ​​c​ore​ element of ​​reporting ​these ​​matters is​ ​setting out​​ an organisation’s material nature-related impacts, dependencies, risks and opportunities and underpins interconnections between the natural, social and human capitals.

 

The ​key messages in​​​ the report will be discussed by Jessica Bingham at COP16 on biodiversity in Colombia 21 October​ ​-​ ​1 November​, including​​​ a panel discussion with standard setter the Global Reporting Initiative, credit agency S&P and biopharmaceutical company AstraZeneca.   ​​

​

​ACCA’s ​​​​research​, ​​in​ collaboration with​ Glasgow University​,​ found that 95% of the 183 early adopters of ​disclosures recommended by ​The Taskforce on Nature-related Financial Disclosures (TNFD) have policies or commitments to halt and ​reverse​ biodiversity loss.

 

However​,​ only 35% have policies and commitments informed by 2030 and 2050 global diversity frameworks (GBFs). Organisations that are already working with accountants on Task Force on Climate-related Financial Disclosures (TCFD) are giving themselves a head start in developing nature-related reporting​,​​ making themselves more ​resilient​ and managing their impact on nature​.

 

The rise of nature-related reporting is ​an opportunity for individual accountants and the profession across strategic planning, value creation, risk management, regulatory compliance, partnership development and decision making processes.

 

Lloyd Powell, head of ACCA Wales/Cymru, said: “Nature-related reporting is increasingly recognised as an essential component of organisational reporting. The role of accountants in this domain is pivotal in driving sustainable business practices and ensuring long-term financial health and environmental stewardship.”

Business Finance

5 Financial Metrics for Business Success

The financial health of a business must be prioritised if it is to meet its objectives and sustain long-term success. This involves assessing key aspects of its operations such as its profitability, cash flow, liquidity, and debt levels to evaluate where improvements can be made to optimise performance. 

By keeping a close eye on various financial metrics, a business can not only thrive during the good times but also ensure its resilience through more challenging times. In this article, we will outline five key financial metrics that reveal the financial health of a business and can give it the insight it needs to ensure its continued survival and growth.

Gross Profit Margin

This metric reveals the percentage of revenue that remains after deducting the cost of goods sold (COGS). It looks at every dollar a business generates in revenue, and calculates how much of that dollar went towards costs of production such as materials and manufacturing.

Gross profit margin = (Revenue – COGS)/Revenue x 100

This metric can tell a business how efficient its operations are, with a high margin indicating greater overall efficiency.

Net Profit Margin

This is a key metric in determining a business’s profitability. It measures the percentage of profit made from every dollar of revenue generated after all expenses including taxes, payroll, and other operating costs have been deducted. It is calculated as follows:

Net profit margin = Net profit/Total Revenue x 100

A high net profit margin reveals a business is making healthy profits relative to its revenue. In contrast, a low net profit margin indicates a business needs to lower its expenses or look for ways to generate more revenue to improve its profitability.

Debt-to-Equity (DE) Ratio

The DE Ratio measures the level of debt a company has in relation to the equity invested by its shareholders.  It is calculated as follows:

DE Ratio= Total liabilities/Shareholder equity

A high DE ratio shows a business is highly leveraged which could put it at risk of financial instability due to high interest repayments and an increased chance of defaulting on its loans. If your business is experiencing financial difficulties, BABR offers a range of solutions that can help businesses navigate and resolve these challenges.

Cash Flow Ratio

This key metric measures how liquid a business is and its ability to meet its financial obligations. It monitors the inflow and outflow of cash in a business, revealing its ability to meet short-term liabilities such as payroll, interest payments and other day-to-day expenses.

Cash Flow Ratio = Operating Cash Flow / Current Liabilities

The higher this ratio, the more financially stable a business is.

Return on Investment (ROI)

ROI measures how well an investment performs by calculating its return relative to its cost. It is an important metric when deciding whether to invest in a new initiative or project as it assesses the efficiency of that investment. ROI is calculated as follows:

ROI= Net profit/Cost of Investment x 100

An ROI greater than 100% shows that an investment is profitable as any gains generated exceed the costs of the investment. In contrast, an ROI below 100% is not profitable, as any gains do not exceed the investment costs.

By tracking these key metrics a business can proactively manage its finances and make adjustments where needed.

 

Business Finance

Reducing Fleet Costs: Maintenance Tips for Small Business Owners

For small business owners, fleet management can be one of the most significant operating expenses. From fuel consumption to repairs, managing a fleet often feels like a constant balancing act. But it doesn’t have to be. Implementing some strategic maintenance practices can not only extend the lifespan of your vehicles but also reduce costs dramatically. A crucial aspect of this is understanding the importance of proper vehicle maintenance, particularly for components like the catalytic converter. In this guide, we’ll cover general fleet maintenance tips and also dive into specifics like maintaining the catalytic converter in vehicles like the Ford Focus MK3, to help you save money and improve efficiency.

 

  1. Prioritize Regular Maintenance Checks

Regular maintenance is key to preventing costly breakdowns. This includes oil changes, tire rotations, and brake inspections. By scheduling routine checks, you can spot potential issues before they turn into expensive problems. For instance, catching a minor engine issue early can prevent a complete engine failure later down the road. Regularly maintaining your vehicles also ensures optimal fuel efficiency, which is a major cost-saving factor in fleet management.

 

  1. Keep an Eye on the Catalytic Converter

The catalytic converter plays an essential role in reducing harmful emissions from your vehicles. A malfunctioning catalytic converter can cause a drop in fuel efficiency and even lead to fines for failing emission tests. For vehicles like the Ford Focus MK3, keeping the catalytic converter in good working order is especially important for reducing emissions and optimizing fuel use.

Example picture of Ford Focus St Mk3 catalytic converter from Buycarparts UK

One way to prolong the life of the catalytic converter is by ensuring the engine is running smoothly. Misfiring spark plugs or a faulty oxygen sensor can send unburned fuel into the exhaust system, damaging the catalytic converter over time. Replacing these smaller parts when needed is far cheaper than having to replace the entire converter.

 

  1. Check for Signs of Catalytic Converter Issues

It’s important to stay proactive in checking for signs that the catalytic converter might need attention. Common symptoms include reduced fuel efficiency, strange rattling noises, or the “Check Engine” light coming on. If you experience any of these issues in a Ford Focus MK3, it’s wise to get the vehicle inspected promptly. Early intervention can save you from the high cost of replacing the catalytic converter and help avoid excess fuel costs due to reduced efficiency.

 

  1. Keep Tires Properly Inflated

Maintaining the correct tire pressure is a small task that can make a big difference. Underinflated tires increase fuel consumption and wear out faster. Regularly checking and inflating tires to the recommended pressure can help maximize fuel efficiency and extend tire life, ultimately saving you money on replacements and fuel.

 

  1. Utilize Fleet Management Software

Technology can be a powerful ally in reducing fleet costs. Fleet management software helps small business owners track vehicle health, schedule maintenance, and monitor fuel usage. These tools can provide data-driven insights that enable you to make smarter, more cost-effective decisions for your fleet.

 

By following these maintenance tips, small business owners can reduce fleet costs significantly. Taking care of critical components like the catalytic converter in vehicles such as the Ford Focus MK3 will not only lower emissions-related costs but also help improve overall fuel efficiency.

 

Business Finance, Diversity & Inclusion

Vidett offers tips to strengthen pension board Equity, Diversity and Inclusion

In National Inclusion Week (23-29 September 2024), Vidett, a UK-leading professional trustee and pension governance firm, is shining a light on the challenges pension boards face in improving diversity and inclusion. Vidett offers trustees actionable tips to help drive change and enhance diversity within their boards.

Inclusive and diverse boards are essential for effective decision-making, governance and good member outcomes, yet research from Cardano suggests that pension trustee boards remain overwhelmingly male and white and over age 45[i].  While this doesn’t make diversity—or diversity of thought—impossible, it does make achieving it more challenging.

Other research from Barnett Waddingham[ii] highlights that whilst most pension scheme trustees believe they are well-trained on The Pension Regulator’s Equality, Diversity and Inclusion (EDI) guidance, many struggle with implementing processes due to time constraints. 71 per cent of trustees said they find themselves constrained by time stating that they are too busy to research and learn about best practices, leading to 77 per cent of them seeking support from external advisers.

Simon Lewis, Client Director at Vidett, commented: “The Pensions Regulator and those representing the pensions industry have published excellent guidance to help trustees and employers review if they are doing enough on EDI for their pension arrangements. Yet this survey shows many trustees lack the time to dedicate to improving diversity and inclusion.

“Trustee boards and their sponsors have a duty to consider EDI on an ongoing basis, focusing on learning, evaluation, and action. To make real progress, it’s crucial to integrate EDI into trustees’ day-to-day operations, rather than treating it as an afterthought or a separate governance burden.”

Below are Simon’s top tips to boost board equity, diversity, and inclusion:

  • Conduct an EDI review: Establish what is currently being done and identify areas for improvement. This review must have a clear remit and support for making changes. Participants should be open and honest, acknowledging that the process may be uncomfortable at times. Additionally, it’s essential to include EDI on the risk register to ensure it remains a focus for the board.
  • Provide training and facilitate EDI conversations: Training teams in equity, diversity, and inclusion can help facilitate constructive conversations to drive change.
  • Address unconscious bias: Ensuring unconscious bias doesn’t influence recruitment and communications is key to improving board diversity. It is vital to address diversity in terms of age and ethnicity, not just gender, in recruitment processes.
  • Set clear EDI principles and expected behaviours: Boards should establish and agree on their EDI principles, making them clear in policies or statements of intent. These principles should be visible in job descriptions and the selection process for new board members.
  • Promote representation: Ensure that processes support wider representation, fostering diverse thinking.
  • Communicate effectively: Review the imagery and language used on websites and other literature that potential candidates might see. Communications should be inclusive and considerate of the audience.
  • Expand recruitment channels: Broaden the search for board members beyond traditional networks by using diverse job boards, partnering with minority-focused professional associations, and engaging executive search firms that specialise in diverse placements.
  • Include EDI as a standing agenda item: To ensure continuous focus, make EDI a regular discussion point at meetings, helping embed it in day-to-day governance.

Simon adds: “National Inclusion Week provides an ideal opportunity for trustees to conduct a review, set goals, and take action. By developing comprehensive diversity policies, setting measurable goals, promoting inclusive recruitment practices, and fostering an inclusive culture, organisations can build more diverse and effective boards.”

Vidett helps pension trustees understand EDI and put proportionate, sensible actions into practice. They have also produced a guide to EDI for pension trustees and managers, which can be downloaded here.

 

Business, Business Finance, Cardiff, Employment

Cardiff Capital Region celebrates commitment to Real Living Wage

Cardiff Capital Region (CCR) is now accredited as a Real Living Wage employer by the Living Wage Foundation. The Real Living Wage accreditation formally recognises CCR’s existing commitment to fair pay and driving inclusive economic growth.

The real Living Wage is the only UK wage rate based on the cost of living. In Wales, more than a tenth of all workers (12.9%) earn less than they need to get by, with around 161,000 jobs paying less than the real Living Wage.

CCR is also a tenant in Cardiff University’s sbarc|spark, Wales’ first Living Wage building which means all tenants are obliged to pay the real Living Wage to employees and onsite contractors.

Kellie Beirne, CCR’s Chief Executive, said:

“Fair economic opportunity is central to CCR’s ambitions to foster good growth across our Region. Our accreditation as a real Living Wage employer formally recognises our long-standing commitment to ensuring fair wages within our organisation, a milestone that sets the standard for businesses across our Region.

“By transitioning to a Corporate Joint Committee, CCR has gained new powers and responsibilities as an independent public body which has made formal accreditation possible, allowing us to carve our own identity and mature as an organisation. This will lay the groundwork for us to build upon our wider vision of regional prosperity.”

Councillor Huw Thomas, Leader of Cardiff Council and Deputy Chair, CCR Committee, adds:

“I am pleased that Cardiff Capital Region has gained the real Living Wage Accreditation. Since becoming a public body earlier this year, CCR’s commitment and determination to further fairer working in our Region aligns with Cardiff Council, which was the first capital city to become a real Living Wage City in 2019.

 

“As Chair of the Cardiff Real Living Wage Steering Group and Action Team, I’m an advocate for fair wages, which keep money within our local economy. After the Steering Group was recognised as ‘Local Champions’ at the Living Wage Champions Awards ceremony this summer, I’m glad to see further progress being made to strengthen the commitment to fair pay across the City Region.”

 

Councillor John Spanswick, Leader of Bridgend County Borough Council and Portfolio Lead for Economic Inclusion said:

“This is a very welcome pivotal move by the CCR team and it augurs well for future growth across the Region. Economic inclusion is the watchword for our ambitions to be a fairer and more prosperous Region.

By shining a spotlight on this issue we are taking determined steps to support our colleagues and demonstrate how valued everyone is.”

Katherine Chapman, Director, Living Wage Foundation said: “We’re delighted that CCR has joined the movement of over 14,000 responsible employers across the UK who voluntarily commit to go further than the government minimum to make sure all their staff earn enough to live on.

“They join thousands of businesses that recognise that paying the real Living Wage is the mark of a responsible employer and they, like CCR, believe that a hard day’s work deserves a fair day’s pay.”

Business Advice, Business Finance

Aleksandr Katsuba: What Support Can Businesses on the Frontline or Liberated Territories in Ukraine Receive?

Supporting businesses in the frontline and liberated territories of Ukraine is a critical part of ensuring economic stability and recovery in these regions. Thanks to various assistance programs, entrepreneurs can receive financial, consultative, and infrastructural support that aids in the restoration and development of businesses.

Government Financial Support Programs

Currently, the Ukrainian government offers several programs aimed at supporting businesses in regions affected by military operations. For example, the “Affordable Loans 5-7-9%” program allows entrepreneurs to obtain preferential loans for business recovery or development. Since the program’s inception, a significant portion of funds has been allocated to support businesses in affected areas, notes Aleksandr Katsuba.

Another important tool is government grants for business development. In 2024, the government allocated funds for grant support to small and medium-sized enterprises operating in liberated territories. These grants can be used for production modernization, the purchase of new equipment, or the launch of new business projects.

International Assistance Programs

International organizations are also actively supporting Ukrainian entrepreneurs, especially those working in frontline or liberated territories, emphasizes Aleksandr Katsuba. The Organization for Security and Cooperation in Europe (OSCE), the United Nations Development Program (UNDP), and the European Union provide grants, consultations, and access to training programs for entrepreneurs.

The European Union launched the “EU4Business: Recovery” program, which offers grants for business development to entrepreneurs in liberated territories. During the first year of the program, over 500 businesses were supported, creating new jobs in the process.

Infrastructure Support and Recovery

One of the biggest challenges for entrepreneurs in affected areas is the lack of proper infrastructure, says Aleksandr Katsuba. The government and international partners are actively working to restore roads, electricity, water supply, and other critical infrastructure.

As part of the “Big Construction” program, significant funds were allocated for infrastructure recovery in frontline and liberated territories. This includes road and bridge repairs, restoration of power grids, and ensuring internet access. Thanks to these measures, entrepreneurs can resume production, restore logistics chains, and gain access to new markets.

Consultative and Educational Support

In addition to financial and infrastructural assistance, entrepreneurs can also receive consultative and educational support. This includes participation in seminars, training sessions, and consultations on how to run a business in post-conflict areas, according to Aleksandr Katsuba.

Many international and national organizations offer free courses on business management, marketing, finance, and legal issues. Additionally, through various programs, entrepreneurs can receive consultations from international experts, helping them better adapt to new conditions and use available resources more effectively.

Business in Action: Examples of Successful Entrepreneur Stories

Successful examples of entrepreneurs who continue or resume their activities in frontline areas serve as inspiration for others. For instance, a recent news story highlighted a farming enterprise in liberated Kherson, which received a grant to purchase new agricultural equipment. This enabled not only the restoration of crop yields but also the creation of new jobs for local residents.

Thus, business support in Ukraine’s frontline and liberated territories is comprehensive, including financial, consultative, and infrastructural measures. Thanks to this, entrepreneurs have the opportunity not only to restore their operations but also to contribute to the economic recovery of these regions.

Aleksandr Katsuba, a Ukrainian entrepreneur and owner of Alfa Gas, discusses how Ukrainian businesspeople can receive assistance in the frontline and liberated territories of Ukraine.

 

Business Finance, Investment, Investment News, Tech, Tech Finance & Investment, Technology

Gcore Raises $60 Million in Series A Funding to Drive AI Innovation and Global Expansion

Gcore, the global edge AI, cloud, network, and security solutions provider, today announced it has secured $60 million in Series A funding from institutional and strategic investors. Led by Wargaming, and with participation from Constructor Capital and Han River Partners (HRZ), this marks the company’s first external capital raise since its inception more than 10 years ago. The funds will be strategically invested in Gcore’s technology and platform, including cutting-edge AI servers powered by NVIDIA GPUs, to drive AI-led innovations. This investment underscores Gcore’s commitment to delivering advanced edge AI solutions that enhance cloud resource efficiency and ensure data sovereignty.  

 

Public organizations, telcos, and global corporations entrust Gcore with their edge workloads due to its expansive network, strong presence in emerging markets, and proven cloud capabilities in AI training and inference. Gcore serves customers across diverse industries, including media and entertainment, gaming, technology, financial services, and retail.

 

Built for the edge and addressing a $200bn+ market opportunity, Gcore’s cloud infrastructure powers both the training of large language models (LLMs) and the inference of AI applications at the edge. This is enabled by Gcore’s global network of over 180 edge nodes across six continents, including 25+ cloud locations, with a total network capacity exceeding 200 Tbps.

“Gcore has been our partner for over 10 years, helping us deliver games to hundreds of millions of players worldwide. We are excited to support the company on this journey and look forward to helping them become uniquely positioned to lead high-speed AI model training and inference anywhere in the world,” said Sean Lee, Chief Corporate Development Officer of Wargaming.

“Constructor Capital is excited to invest in Gcore, a leading player in the AI IaaS space, in a booming market with CAGRs of over 40%. We believe in Gcore’s unique value proposition as a comprehensive provider offering a wide range of edge solutions, high automation, attractive TCO, extremely low latency, and an experienced management team. We look forward to a successful journey together in the years to come,” added Matthias Winter, Managing Partner of Constructor Capital.

 

“We are thrilled to invest in Gcore for its forward-thinking approach to global low-latency AI infrastructure and innovative edge AI solutions,” said Christopher Koh, Managing Partner of HRZ. “We are especially impressed by their leadership in APAC, collaboration with world-class partners, and strategic alignment with emerging AI opportunities in the region.”

“We are on the cusp of an AI revolution that will transform how companies operate,” said Andre Reitenbach, CEO of Gcore. “Gcore is perfectly positioned to connect the world to AI, anywhere and anytime, by delivering innovative AI, cloud, and edge solutions. The growing demand for AI infrastructure from enterprises and SMBs alike highlights the importance of this significant investment. We are thrilled by the support of investors like Wargaming, Constructor Capital, and Han River Partners as we enhance our extensive network of AI servers and reinforce the powerful edge services we offer.”